Teachers' SACCO money runs out

The sh2.3b government released to the Teachers' SACCOs Union (UTSCCU) on December 4 last year was on Monday exhausted after it was disbursed to 1, 415 teachers through their respective savings and credit cooperative societies, leaving 3,107 teachers missing out on the loans.

"Funds have been exhausted, yet the finance ministry released sh9.3b teachers' SACCO money to the Microfinance Support Centre (MFSC) — sh4.3b in the 2013/2014 financial year and sh5b in the 2014/2015 financial year — but the fund manager is holding onto the money," James Tweheyo, the teachers' union general secretary, said.

Tweheyo appealed to the education and finance ministries to engage the MFSC to release the teachers' SACCOs money "so the 3,107 teachers who missed out can also get the money to improve their livelihoods."

According to Stephen Nabende, the UTSCCU board chairperson, the 1, 415 teachers who benefited from the sh2.3b belong to 16 of the 53 teachers SACCOs that had submitted in loan requests. He said beneficiaries were selected on a ‘first-come-first-serve' principle.  Each teacher will on average get a loan of sh2m.

"The money was not enough for all applicants. The UTSCCU received additional loan applications from 37 SACCOs for 3,107 teachers. If we were to give the 37 SACCOs, we would need sh7.2b," said Nabende.

The UNATU SACCO in Kampala received sh170m for 61 teachers. The Mukono-Kayunga Teachers and Parents SACCO received sh500m for 250 teachers.

In the eastern region, the Namutumba Teachers and Parents SACCO receive sh70m for 43 teachers. JMC Teachers SACCO in Jinja received sh150m for 50 teachers. Mpala SACCO, also in Jinja, received sh106m for 52 teachers. And the Malongo Integrated SACCO in Mayuge received sh200m for 200 teachers.

Serere District Teachers SACCO in Serere received sh53m for 29 teachers. Jinja Teachers SACCO in Jinja received sh200m for 121 teachers. 

Kween District Teachers SACCO in Kween received sh180m for 65 teachers. Iganga Based Teachers SACCO in Iganda received sh325m for 111 teachers. 

Amuria Teachers at Work Development SACCO in Amuria received sh96m for 29 teachers. And Kumi Progressive Teachers SACCO in Kumi received sh67m for 23 teachers.

In northern Uganda, Gulu Army SSS SACCO in Gulu received sh250m for 123 teachers.  Nebbi-Zombo Workers SACCO in Nebbi received sh9.85m for 8 teachers. Otuke District Teachers SACCO in Otuke received sh150m for 150 teachers. And Alebtong District Teachers SACCO in Alebtong received sh150m for 100 teachers.

The money is part of the sh25b President Yoweri Museveni promised teachers' SACCOs in 2011, with sh5b of the fund to be released annually.

In the 2013/2014 financial year, the finance ministry released sh4.3b to the MFSC and another sh5b in 2014/2015, so that various teachers could borrow.

However, the Uganda National Teachers Union preferred the money to be managed by UTSCCU, which provoked a series of disagreements between the teachers and the education ministry leading to a number of strikes in 2014 and last year.

"We have sent the money to the SACCOs accounts. The SACCOs managers will then wire it to the teachers' accounts. It is only the beneficiaries who will touch the money," Nabende said. 

Only teachers on government payroll are eligible for the loans. The education ministry indicates that there are 150, 000 teachers on government payroll, earning between sh350, 000 and sh1.2m.

Nabende said teachers will access the loans at a minimum interest rate of 8% and maximum 15%.

Ethel Kamba, representing the education ministry permanent secretary Dr. Rose Nassali, asked the teachers to be "accountable and transparent" and to invest the funds into projects that can improve their livelihoods.

"Remember it is a loan. And that it is a revolving fund. So, endeavor to repay so other teachers can benefit," she said.

She called on the teachers to be patient with the MFSC, saying the fund manager would release the (teachers' SACCO) money "soon or later after they have sorted their house."

Egosu Opolot, the commissioner for cooperative development at the trade ministry, challenged the teachers to "protect the money and make it grow" so that it translates into their performance at school.

Christopher Ejalu, the chairperson Serere District Teachers SACCO, commended President Yoweri Museveni for coming good on his promise. 

He asked UNATU to keep engaging the education and finance ministries so "the remaining money (of the sh25b pledge) can be released.